Tender No For the Supply of LED lights for Various Types of Rolling Stock for Israel Railways Ltd. ( Tender ) General Terms and Conditions

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אגף רכש והתקשרויות Procurement & Contracting Division Tender No. 41703 For the Supply of LED lights for Various Types of Rolling Stock for Israel Railways Ltd. ( Tender ) General Terms and Conditions Israel Railways Ltd. ( ISR ), in accordance with its obligations under the Israeli Mandatory Tender Laws, its implementing regulations and the International Agreement on Government Procurement, wishes to obtain bids for: The supply of LED lights for various types of rolling stock for a period of five (5) years (the Agreement Period ) all in accordance with and subject to the terms specified in these General Terms and Conditions and the accompanying Tender Documents. 1. General Each Bidder may submit a bid (the "Bid") for the manufacture and supply of at least one of the following LED lights: 1.1. LED headlight (hereinafter: "Group A"); And/or 1.2. LED Generator room lights (hereinafter: "Group B"). 1.3. Both Group A or Group B are considered to be defined as LED lights as will appear further on in the terms and conditions. A Bidder shall be entitled to submit a Bid for LED headlights and/or a bid for LED generator rooms lights and/or a Combined Offer for both (hereinafter: "Combined Offer"). 1. Pre-requisites for Participation in the Tender (the Pre-requisites ): 2. The bidder has supplied, commencing from the beginning of the year 2014 and onwards, at least one thousand (1,000) LED lights for various Rolling Stock, to at least one (1) railway company. 3. 3.2. It is hereby clarified that the prerequisites shall apply for bidder that shall submit an offer for one group or both groups. By way of example: if a bidder submits a bid for Group A, its shall be required to prove that from the beginning of the year 2014 and onwards, it has supplied at least one thousand (1,000) group A LED lights for various Rolling Stock, to at least one (1) railway company 4. Proof of Compliance with the Prerequisites: 4.1. Bidder shall prove full compliance with the Prerequisite specified in Section 1 above, by submitting to ISR all the details, documents and confirmations required under the provisions of the Prerequisites which shall include, inter alia, the following:

שגיאה! 4.2. Bidder shall prove its full compliance with the Prerequisite set forth in Section by submitting a signed and completed Experience and Reference מקור ההפניה לא נמצא. List, in the form attached hereto as Appendix D, evidencing that bidder has supplied, commencing from the beginning of the year 2014 and onwards, at least one thousand (1,000) LED lights for various Rolling Stock, to at least one (1) railway company. In addition, Bidder shall submit additional proof, such as reports and other relevant documentation. 4.3. Notwithstanding the aforesaid, ISR reserves its right, at its sole discretion, not to disqualify proposals which do not contain all the documents and certificates necessary to prove its compliance with the Prerequisites. ISR shall have the right, at its sole discretion, to request from any of the Bidders, details and/or approvals and/or recommendations and/or certificates and/or additional documentation, required in order to allow ISR a full and complete review of the aforementioned. 4.4. Bidder shall undertake to maintain its compliance with the Prerequisites specified in Section 1 above at all times, up to and/or including the Proposal Validity Period as set forth in Section 17 below. 5. Technical Requirements All bids must comply with all of the requirements and terms included in the Technical Specifications (Appendix A). 6. Governing Agreement 6.1. The supply of the LED lights, including but not limited to, the price, terms of payment, scope of liability, responsibility and all other general and legal terms for the engagement with the Winning Bidder (the "Supplier"), shall be governed by the terms and conditions of the Agreement (Appendix C). The Agreement and the annexes attached thereto constitute an inseparable part of this Tender. 6.2. Each Bidder agrees to be bound by the Agreement in the event that it is chosen as the Supplier. Once the Supplier is chosen and the Agreement executed, the provisions of the Agreement shall take precedence over the provisions of this Tender in the event of a contradiction between them. 7. Performance and Warranty Guarantee 7.1. The Winning Bidder shall submit Performance and Warranty Guarantee, as defined in the Agreement. 8. Purchase Order 8.1. ISR intends to issue a Purchase Order for the LED light (the " Initial Purchase Order") within sixty (60) days from the effective date of the Agreement (the "Effective Date") subject to the terms and conditions set forth in the Agreement. 2

8.2. Additionally, during the Agreement Period, ISR, at its sole discretion, shall have the option to purchase from the Supplier additional LED light. The relevant terms and conditions detailed in this Tender, including its Appendices, shall apply, mutatis mutandis, to the additional LED light. 9. Delivery Terms 9.1. The terms of supply and delivery of the LED lights shall be "Delivered At Place" (DAP) (as that term is defined in Incoterms 2010, International Rules for the Interpretation of Trade, ICC Publication No. 715), to a site further specified at ISR's sole discretion in Israel (the "Site"), as specified in the Agreement. 9.2. Without derogating from the aforementioned, it is hereby clarified that the responsibilities of the Supplier shall include the cleaning of the containers, and un-stuffing and unloading at the Site, at no extra cost. 10. Delivery Time The time of delivery for the supply of the LED lights and completion of all final acceptance procedures shall be as defined in the Agreement. 11. Spare Parts 11.1. The Bidder shall undertake in its proposal that in the event of being elected as the Winning Bidder, it will undertake that during a period of at least five (5) years commencing on the date of completion of the Warranty Period for the LED light, it will supply ISR with all spare parts and tools necessary to maintain and repair the LED light (the Spare Parts ), if needed. Following such five (5) years, if a spare part is no longer available on the market, the Supplier will offer ISR an adequate substitute at a comparable price. 11.2. The Bidder shall include, as part of its proposal, a list of all necessary and recommended Spare Parts and their prices, in the form attached hereto as Appendix E (the Spare Parts List and Prices ). The Spare Parts List and Prices shall be in English or Hebrew and shall quote the delivery time, description, original manufacturer's name, part number of original manufacturer and the prices DAP (ISR s Site) for each Spare Part, which shall remain fixed for a period of two (2) years from the Final Submission Date. 11.3. As from the 2nd anniversary of the Final Submission Date, the Proposed Prices for the Spare Parts shall be adjusted once a year to the European Consumer Price Index (HICP E27 - Overall index, Monthly Index, (2005=100), as published on the Eurostat website: http://epp.eurostat.ec.europa.eu/portal/page/portal/hicp/data/database ("HICP"). 11.4. The basic index for the HICP shall be the last known index on the Final Submission Date. 12. Warranty 12.1. Each LED light shall be fully warranted by Supplier for a period twelve (12) months from the date of issuance of the Final Acceptance Certificate for the LED light (the Warranty Period ). 3

12.2. During the Warranty Period, Supplier shall immediately repair or replace any faulty part, component or system of the LED lights, all subject to the terms set forth in the Agreement (the "Warranty"). 12.3. The cost of the Warranty, including the costs of spare parts needed for such repair or replacement, labor, required equipment and any other cost related thereto as defined in the Agreement, shall be borne and paid solely by the Supplier, and be considered as part of the Proposed Price for the Purchase Order all as detailed in the Agreement. 13. Price Proposal 13.1. The Bidder shall provide the proposed price proposal for the manufacture and supply of one or more of the following LED lights (the Proposed Price ), in the Bidder s Proposal Form attached hereto as Appendix B in accordance with the following instructions: 13.1.1. Group A: LED Headlights - Section 3.1 in the Bidder's Proposal Form ("Group A"). 13.1.2. Group B: LED lights for Generator rooms - Section 3.2 in the Bidder's Proposal Form ("Group B"). 13.2. The Prices include any sum which the Israeli Tax Authorities require to be withheld at source. The amounts required by the applicable law to be withheld at source by the Israeli Tax Authorities shall be deducted from all sums set and shall be paid to the Israeli Tax Authorities. 13.3. The Prices shall also include all taxes, fees, duties, licenses, costs or other payments that are to be paid in connection with the exportation, supply and delivery of the LED lights, including but not limited to all types of importation and custom duties and services, such as transportation costs, customs agents fees, purchase tax (in Hebrew "Mas Kniya" or duties, ), Israeli customs "דמי רציף" ), wharfage fees (in Hebrew "Dmei Ratzif" or "מס קניה" port handling fees (in Hebrew "Dmei Nitul" or ניטול" "דמי ), port infrastructure fees (in Hebrew "Dmei Tashtit" or תשתית" "דמי ), cleaning of the containers, stuffing and unloading of the containers, cam locks for discharging the LED lights at port, supervision while discharging at port, discharging terms at port, etc. Notwithstanding the above, Israeli Value Added Tax, if applicable, shall be borne by ISR. For the sake of clarity, the Prices shall include any sum which the Israeli Tax Authorities require to be withheld at source. 13.4. The Proposed Price for the LED lights shall include both a Price per Unit and a Total Price. In the event of a contradiction between the Price per Unit and the Total Price, the Price per Unit shall prevail, and ISR may amend the Total Price in order to correctly reflect the Price per Unit quoted by the Bidder. 13.5. Each Bidder shall solely bear all costs associated with the preparation and submission of its bid. This shall include, without limitation, any and all expenses and losses, which may be incurred by Bidder, consultations with professionals, conducting investigations and inquiries of any kind, preparation of surveys and documents and the authentication and translation thereof and any other aspects in connection with the bid. ISR will in no case be responsible or liable for any of the above costs, nor shall it be required, under any circumstances, to reimburse any such costs to any Bidder. 4

14. Terms of Payment Payment by ISR to the Supplier shall be as set forth in the Agreement. 15. Evaluation process and selection of Winning Proposal The evaluation of the bids submitted by Bidders shall be conducted by ISR in accordance with the following process: 15.1.1. Stage A Preliminary Evaluation 15.1.1.1. Stage A1 Pre-Requisite: Bidders will be evaluated in accordance with Section 1 above. 15.1.1.2. Stage A2 - Technical Evaluation in parallel, the Technical Proposals shall be evaluated in accordance with the Technical Specifications. 15.1.2. Stage B Commercial Evaluation ISR shall open the commercial proposals of Bidders who satisfied Stage A above. 15.1.3. Stage B1 The Total Evaluated Price Proposal for the LED lights set forth in Appendix B shall be calculated in accordance with the relevant formula specified in Section 3 of Appendix B as applicable. 15.1.4. Stage B2 In the event a Bidder submits a Price Proposal for only one group of LED lights - the prices set forth in Appendix B shall not be subjected to any price discount. In the event a Bidder submits a proposal for more than one type of LED lights - All the prices submitted for each group of LED lights shall be subjected to the price discount set forth in Section 3 of Appendix B. 15.1.5. Stage B3 - The prices of each group of LED lights that have been calculated according to Stage A and B above shall be compared. In the event a Bidder's proposal is the lowest for more than one type of LED lights, such bidder shall be selected as the winning Bidder for the LED lights for which its proposal/s was the lowest. 15.1.6. Stage B4 - In the event a Bidder's proposal is not the lowest for more than one type of LED lights, the proposals shall be compared, all of which shall not be subjected to the discount. The lowest proposal, with the lowest TEP for each type of LED lights shall be selected as the winning Bidder. It is hereby clarified that each Type of LED light shall be compared separately. 15.1.1. The Winning Bidder shall be the Bidder whose proposal fully complies with the Pre-requisite specified in Section 1 above, as well as the Tender's requirements, and has the lowest TPLL (Total Price for the LED Lights), as specified in Section 6 of the Bidder's Proposal Form (Appendix B). 5

15.1.1.1. When reviewing the proposals submitted, ISR reserves the right, in its sole discretion, to take into consideration negative past experience of ISR and/or any other entity with any particular bidder and ISR may reject any particular proposal based solely on such past experience. 15.1.1.2. Without derogating from the above, before nominating the Winner Bidder, ISR may upon its sole discretion (but shall not be obligated to) require the Bidder, whose proposal fully complies with the Pre-requisite specified in Section 1 above, as well as the Tender's requirements, and has the lowest TPLL, to allow ISR and/or its representatives to visit and inspect such Bidder's Factory and/or Bidder's customers in order to evaluate such Bidder's ability to comply with its undertakings and warranties in this Tender including the Agreement. Such Bidder shall make its best reasonable efforts to accommodate such visit as soon as requested by ISR. ISR reserves the right, under its sole discretion, to reject and/or disqualify a proposal in the event the Bidder does not accommodate such visit at all and/or in the time frame required by ISR and/or such visit raises doubts with regards to the accuracy of Bidder's warranties in the Tender and/or the Agreement and/or its ability to comply with its undertakings under this Tender including the Agreement. 16. Submission of Proposals 16.1. All proposals must be submitted no later than November 13, 2017 by 13:00 (Israel time) ("Final Submission Date") in three (3) separate envelopes, as specified below and these shall all be inserted into one main envelope, which shall read "Tender No. 41703" (hereinafter: the "Main Envelope") at the address set forth below. ISR shall be entitled to postpone the deadline at its sole discretion. 16.2. The proposal shall be submitted by a single Bidder. Proposals submitted by more than one Bidder will be disqualified. 16.3. The proposal is to be submitted in three (3) copies into Tender Box, located at the following address: Israel Railways Ltd. Contracting & Procurement Division Darchei Moshe 3 st. Lod, Israel 16.4. The Bidder is requested to read carefully all of the documents attached herein and submit the following documents which should be included in the Main Envelope, signed, where applicable, by the authorized signatory bodies. 16.5. An envelope which shall read "Commercial Proposal -Tender _41703" shall be inserted in the Main Envelope and shall include the following: 16.5.1. A signed and completed Bidder's Proposal Form (Appendix B). 16.5.2. A signed and completed Spare Parts List Form (Appendix E). 6

16.6. A separate envelope which shall read "Pre-requisites - Tender 41703" shall be inserted in the Main Envelope and shall include the following: 16.6.1. A signature on the last page of the Agreement (Appendix C), including the Bidder s relevant information in the heading thereof (excluding the date) and including the Bank Account Form, attached to the Agreement as Annex C (only the winning Bidder is required to complete part B of the Bank Account Form). 16.6.2. A signed and completed Experience and Reference List, in the form attached hereto as Appendix D. 16.6.3. A copy of the invoice evidencing payment of the Participation Fee as set forth in.שגיאה! מקור ההפניה לא נמצא. Section 16.7. A separate envelope which shall read "Technical Proposal - Tender 41703" shall be inserted in the Main Envelope and shall include the following technical information: 16.7.1. A signed copy of the Technical Specifications (Appendix A). 16.7.2. Company profile of the Bidder and its expertise; Company profile of any subcontractor and its expertise; relevant information and data regarding the LED lights. 16.7.3. Two (2) sets of instructions regarding the packing, transporting and storage and instructions of the LED lights in English or in Hebrew. 16.7.4. Any and all drawings, documentation, information and certifications required pursuant to the Technical Specifications. 16.7.5. All information shall be submitted also in a soft copy (PDF file format). 17. General The following appendices are attached hereto: Appendix A Appendix B Appendix C Appendix D Appendix E - Technical Specifications; - Bidder s Proposal Form; - A copy of the Agreement; - Experience and Reference List; - Spare Parts List; 18. Proposal Validity All submitted proposals must be valid until at least twelve (12) months from the Final Submission Date as set forth above (the "Proposal Validity Period"), and may not be revoked or changed by the Bidder during this period for any reason whatsoever. In the event that ISR shall not enter into a contractual relationship with the Winning Bidder, for any reason whatsoever, and/or the 7

agreement with the winning Bidder will be cancelled, ISR shall be entitled to elect, as a winning proposal, the proposal which achieved the next lowest TEP. The terms set forth in this section shall apply, mutatis mutandis, following the replacement of the Bidder's proposal as aforesaid. 19. Verification ISR shall have the right, at its sole and absolute discretion, to verify the recommendations and other documents provided by the Bidder, and to request from any of the Bidders additional details, approvals, recommendations and/or certificates. In addition, ISR may, at its sole and absolute discretion, upon prior coordination with the Bidder, inspect the facilities of such Bidder at any time or any facilities where components of the LED lights proposed by the Bidders are being manufactured. ISR may, at its sole and absolute discretion, contact and/or visit each of the customers detailed in Appendix D in order to check and evaluate the Prerequisites, the Technical Proposal, and/or Bidder's Proposal. 20. Negotiations 20.1. ISR reserves the right, at its sole discretion, to conduct negotiations with any of the Bidders in this Tender that it finds suitable, with respect to their commercial and/or technical proposal, or not to conduct negotiations at all. 20.2. Without derogating from the above, ISR shall have the right to instruct all Bidders whose Commercial Proposals were evaluated, to submit an additional improved Commercial Proposal in the event that all bids received are less favorable to ISR than the ISR estimation and/or to cancel the Tender. Bidders hereby forfeit any claim in the event that ISR shall decide to act in such manner. 21. Language of Bids All documents submitted by the Bidder in this Tender (including but not limited to all attachments, schedules, annexes, sketches, drawings, diagrams, tables and charts) and any additional information, question, request for clarification and interpretation, or any other communication, must be in English or Hebrew only, unless otherwise specifically stated in the Tender Documents or approved by ISR. 22. Confidentiality and Proprietary Rights 22.1. By participating in the Tender process, each purchaser of the Tender Documents and each Bidder are deemed to have agreed to keep in strict confidence, and not to disclose and not to make any use of any information or data, or any form or media, partial or complete, provided to them by ISR on its behalf or made known to them otherwise as a result of or in connection with the Tender; except that each Bidder may use such information or data solely for the purpose of preparing its bid. It is hereby clarified that this Section 22 shall not apply to documents and/or information published by ISR on its website. 22.2. By submitting a bid, each bidder (including its members) shall be deemed to represent and warrant to ISR that (i) it is not bound by any contractual or statutory obligations which would preclude the Bidder from providing the data and information contained in the bid or any portion thereof, (ii) it has the right to make all disclosures that are made in the Bid; (iii) the data and information contained in the bid do not include any confidential 8

information, trade secret or other proprietary information of the bidder and/or to any third party (except as and to the extent that the bidder may otherwise clearly indicate in writing) that ISR is prevented from using it. 22.3. All rights and titles in and to any and all drawings, sketches, and other technical documents and information provided by ISR or on its behalf to the Bidder as well as to all of the Tender Documents and the contents thereof, shall be deemed to be the sole and exclusive proprietary of ISR, and/or their use by third parties allowed by ISR. 23. General Prerogatives of ISR 23.1. A proposal reflecting any reservation regarding the attached documents or any part thereof, including the Agreement or the appendices attached thereto, whether by rejection, insertion or amendment to any part of the attached documents, may be disqualified. 23.2. ISR shall not be bound to accept the lowest-priced proposal or any other proposal whatsoever. In addition, ISR does not commit itself in any way to acquire the LED lights or to enter into a contractual relationship with any of the Bidders. 23.3. Any of the LED lights acquired, shall be on a non-exclusive basis and ISR at its sole discretion may at any time purchase a Led lights from any of the Bidders, and/or may acquire similar or identical Led lights from any third party. 23.4. The issuance by ISR of a Purchase Orders under the Agreement shall be following the receipt of the necessary budgetary approvals. 23.5. ISR, at its sole discretion, may decide not to select any of the submitted proposals or may decide to cancel the entire Tender at any time. 23.6. ISR reserves the right to reject the proposal of a Bidder which does not have the financial strength required for the performance of the Agreement or whose commercial Proposal is significantly lower than ISR's estimation. 23.7. In addition to any other event which entitles ISR by law, to cancel the Tender, ISR reserves the right, at ISR's sole discretion, to cancel this Tender in the following events: 23.7.1. If only one of the bids is found suitable, according to the Pre-requisites and/or other specification requirements according to this Tender Documents; 23.7.2. If ISR concludes that there was a flaw in the Tender process and/or in the evaluation of the bids; 23.7.3. If ISR has found that a critical mistake has been made in the Technical Specifications, inter alia, by giving false data, missing data or incomplete data; 23.7.4. If the circumstances and/or ISR's requirements have been significantly changed, to such extent which requires the cancellation of the Tender; 9

24. Tender Procedure General 24.1. Download of the Tender Documents 24.1.1. Tender Documents are available for review and download at no charge at ISR's website at the following address: http://www1.rail.co.il/en/tenders/pages/tenderlisthome.aspx (the interface at ISR's website with respect to the Tender Documents is currently in Hebrew only). 24.2. Amendment of Tender Documents 24.2.1. At any time prior to the Final Submission Date, ISR may amend the Tender Documents by issuing notices to the Bidders. Any notice thus issued, shall be deemed as an integral part of the Tender Documents, and shall be communicated in writing. Each bidder shall promptly acknowledge receipt of each notice to ISR (however, each notice shall be binding upon each Bidder, regardless whether the bidder has acknowledged receipt of such notice(s) or not). 24.3. Notification of the Winning Bidder 24.3.1. ISR shall send notification of its decision to the Bidder selected as the winner in the Tender. Notification shall also be sent to the other Bidders. For the removal of doubt, the aforementioned notification of the winning bid shall not constitute the formation of a contract between ISR and such Bidder, and the entering into a binding agreement is conditioned upon the fulfillment of all required terms and conditions as detailed in the Tender Documents and the Agreement. 24.4. Request for clarifications and/or additional information 24.4.1. Any Bidder may submit to ISR, in writing, inquiries and/or requests for clarification and/or additional information regarding the Tender or relating to the Tender Documents, as specified herein below (a Request for Clarification ). 24.4.2. A Request for Clarification shall be titled Request for Clarification and shall clearly specify to which Tender Documents (volume, attachment, section) it refers. 24.4.3. Bidders shall submit Requests for Clarification with respect to any errors, ambiguities, inconsistencies, omissions, erroneous, unclear or imperfect provisions ("Errors") in the Tender Documents. It is clarified that by submitting its Bid, Bidder irrevocably and unconditionally waives any claim, demand or legal or administrative proceeding alleging or claiming that the selection process in the Tender has been influenced or biased by an Error and/or that Bidder has suffered any damages as a result of such Error. 10

25. Notices to Bidders 25.1. Should ISR decide, at its sole discretion, to respond to any Requests for Clarifications, such response shall be published in ISR's website (in the tenders section under the Tender's name) and, as of the date of such publication, shall constitute an integral part of the Tender Documents (each a "Notice to Bidders"). 25.2. Bidders shall be solely responsible to check ISR's website on a regular basis in order to follow publications by ISR. Any Notice to Bidders published at ISR's website in accordance with Section 23.1 shall be binding upon each Bidder, whether or not Bidder is aware of such Notice to Bidders, and Bidders shall not have any claim in connection therewith. 25.3. It is hereby clarified that only information provided by ISR to the Bidders by the way of a Notice to Bidders in accordance with Section 23.1 shall be binding upon ISR (unless expressly specified otherwise therein), and ISR shall not be bound by any oral or written response or information communicated to Bidders in any other way, including any response or information conveyed during any meeting held with the Bidders (if held). 26. Meetings, Conferences or Discussions ISR, at its sole discretion, may arrange clarification meetings, site visits, conferences or discussions, and instruct Bidders that participation is compulsory on all Bidders wishing to submit a Bid. 11

Appendix A Tender No. 41703 Technical Specifications Attached separately 12

Appendix B Tender No. 41612 Date: Bidder's Proposal Form Re: Proposal for the Supply of LED Light for Israel Railways Ltd (the"tender") Bidder declares that it has read, fully understands, and agrees to the terms and conditions included in the tender documents of Tender No. 41703, including the General Terms and Conditions, the Technical Specifications and any Appendices thereof (collectively the "Tender Documents"), and hereby submits to ISR (as that and all other capitalized terms not otherwise defined in this Appendix are defined in the Tender Documents) its proposal for the supply of the LED lights. All of the terms and conditions included in the Tender Documents shall be considered integral parts of this proposal. 1. Any price stipulated herein shall be quoted in Euro ( ) currency. Bidder hereby acknowledges and declares that all of the sums stated herein (Appendix B) shall constitute the final price that will be paid to the Bidder for the supply of the LED lights, including all of the related services, Warranty, Services Support Visits and spare parts obligations, equipment, cost, fees duties and taxes as specified in the Agreement. 2. The Prices shall also include all taxes, fees, duties, licenses, costs or other payments that are to be paid in connection with the exportation, supply and delivery of the LED lights, including but not limited to all types of importation and custom duties and services, such as transportation costs, customs agents fees, purchase tax (in Hebrew "Mas Kniya" or קניה" "מס ), wharfage fees (in Hebrew "Dmei Ratzif" or רציף" "דמי ), Israeli customs duties, port handling fees (in Hebrew "Dmei Nitul" or ניטול" "דמי ), port infrastructure fees (in Hebrew "Dmei Tashtit" or תשתית" "דמי ), cleaning of the containers, stuffing and unloading of the containers, cam locks for discharging the LED lights at port, supervision while discharging at port, discharging terms at port, etc. Notwithstanding the above, Israeli Value Added Tax, if applicable, shall be borne by ISR. For the sake of clarity, the Prices shall include any sum which the Israeli Tax Authorities require to be withheld at source. 3. The Proposed Price for the Initial Purchase Order of the LED lights including 1 year of Warranty is as follows: 13

3.1. Group A - Item Price per LED headlights (Low and high beam) for Double Decker Bombardier Power (DDPC) Coach LED headlights (Low and high beam) Single for Decker Siemens Power Coach (SDPC) LED headlights for Decker Single Gec Alsthom Power Coach (PPPC). Unit Quantity (for evaluation purposes only) Total Evaluated Price for Initial Purchase Order ("ATDP") Total Price (Quantity multiplied by Price per Unit) 256 A total sum of (in words: ) Euro ( ) 56 A total sum of (in words: ) 20 A total sum of (in words: ) 14

3.2. Group B- Item Price per LED lights for Generator room of SDPC, (24 VDC) DDPC, PPPC LED lights for Generator room of GM26, JT42 locomotives (72 VDC) Unit Quantity (for evaluation purposes only) Total Evaluated Price for Initial Purchase Order ("BTDP") Total Price (Quantity multiplied by Price per Unit) 656 A total sum of (in words: ) 880 A total sum of (in words: ) 1. In the event that the Bidder submits a price proposal for more than one group, the Bidder's total evaluated price ("TEP") for Group A and B shall be calculated in accordance with the following formula: TPLL = BTDP + ATDP 2. In the event that the Bidder submits a price proposal for more than one group of LED lights, the bidder shall quote a discount (in percentages) which shall be applicable for all the LED lights and shall be calculated as set forth in Section 13 of the Tender's General Terms. The discount that shall be applicable for all the LED Lights %. ( A discount of % (in words)). 3. All prices set forth pursuant to this Section 3 shall be fixed for two (2) years) commencing on the final submission date and shall not be linked to any price increase mechanism. 15

4. Linkage Mechanism 4.1. The Proposed Price for the LED Lights as defined in the Tender Documents and the prices of the Spare Parts shall be fixed and shall not be linked to any price increase mechanism for a period of two year commencing on the Final Submission Date. 4.2. As from two year from the Final Submission Date the Proposed Price for the LED Lights and the Spare Parts shall be linked to the European Consumer Price Index (HICP E25 - Overall index, Monthly Index, (2005=100) as published at Eurostat website http://ec.europa.eu/eurostat/tgm/table.do?tab=table&init=1&language=en&pcode=tec00118 &plugin=1) ("HICP"). 4.3. The basic index for the HICP shall be the last known index on the Final Submission Date. 4.4. The price adjustments set forth herein shall be performed once a year only from the second anniversary of the Final Submission Date. 5. Bidder understands that payment by ISR to the Supplier for the LED lights shall be made by way of bank transfer in the manner and terms set forth in the Agreement. 6. Bidder hereby permits representatives of ISR to inspect its facilities, at any time. Signature of Bidder By: (print or type name): Title: 16

Appendix C Tender No. 41703 Attached Separately 17

Appendix D Tender No. 41703 Date: Experience and Reference List of the Bidder The bidder has supplied, commencing from the beginning of the year 2014 and onwards, at least one thousand (1,000) LED lights for various Rolling Stock, to at least one (1) railway company. Name of company for which the Date the LED Quantity of Led lights that Name of Tel. and Led lights were supplied lights were were supplied Contact Fax No. supplied Person of Contact Person Signature of Bidder: By: Title: (*) Additional pages may be added The Experience and Reference List shall be in English or Hebrew and shall quote the requested details. 18

Appendix E Tender No. 41703 Spare Parts and Maintenance Tools List 1. SPARE PARTS LIST AND PRICES The Bidder shall submit a list of all necessary and recommended Spare Parts required for maintenance of the LED lights. Spare Part Original manufacturer s name and part Price (DAP) at Site Delivery Time Estimated annual usage number (in EURO) (*) Additional pages may be added The Spare Parts List shall be in English or Hebrew and shall quote the delivery time, description, original manufacturer's name, part number of original manufacturer, estimated annual usage and the prices at ISR s Site (DAP) for each Spare Part. Signature of Bidder: 19

By: Title: 20